Income Tax Department
The department has made preparations to crack down on taxpayers who get exemption by showing wrong deductions in income tax. Central Board of Direct Taxes i.e. CBDT is in action mode. The department has found out about such middlemen and taxpayers who were claiming fake deductions and exemptions while paying taxes. For this, they are also warned to improve their returns.
CBDT has given proper information about this. The department said that through its data-driven approach, it has found that many taxpayers are claiming fake deductions and exemptions in their ITR. These claims are being made wrongly under the Income Tax Act. Especially, fake claims are being made in the name of donation under section 80G or 80GGC of Chapter VI-A. That means people are trying to save tax by making the excuse of donation, but those donations are not real.
CBDT said that large scale fake donations are being made in the name of unregistered political parties or charitable institutions and trusts. When the registered addresses of these organizations were checked, it was found that many of the organizations were closed at the time of donation or were never functioning. Meaning, this is all fraud.
CBDT nudges taxpayers against the claim of bogus deductions. pic.twitter.com/Qj4dfglanQ
— Income Tax India (@IncomeTaxIndia) December 13, 2025
How did you know all this?
CBDT has strengthened the high-risk data-driven approach. Data analytics found a pattern in which claims of donations have been made to dubious organizations. CSR i.e. Corporate Social Responsibility funds of companies are also being used fraudulently. That means companies are also showing fake donations. People are evading taxes by using CSR. Evidence of all this has been collected.
Information given to taxpayers
CBDT has started sending SMS and email advisories from December 12, 2025 to such taxpayers in whose returns suspicious donation claims have been found. It is clearly being said in these messages that taxpayers should check their returns and update them if necessary.
What should taxpayers do?
Every taxpayer has been advised to keep his correct mobile number and email ID updated at the time of ITR filing. So that no message or email is missed. If there is a fake claim, then file ITR updated return quickly. This facility is available under section 139(8A). Complete information about deduction provision and filing of updated returns will be available on www.incometax.gov.in. Go there and check. CBDT has launched a targeted “NUDGE” campaign to detect fake claims. NUDGE means a slight warning or reminder, which is sent to bring the taxpayer on the right path. Now the department has also issued a notice in this regard.
Read also– Will the rupee boom due to India-US trade deal? Currency will improve!